Posted: Thu Aug 30, 2007 5:59 pm Post subject: Current lender requested monthly expenses
My ARM is resetting in Aug. and jumped by 3 points. These payments are not affordable to me. After discussing with current lender he has requested for monthly expenses to calculate the mortgage i could affoird. . I have been current with my payment since last 2 yrs. My current payment i may be able to save 600-700 a month. My question is do i show these savings in my expense list as i do not want my rates to go up..
My ARM is resetting in Aug. and jumped by 3 points. These payments are not affordable to me.
Why don't you refinance your present mortgage into a frm? Your loan is current and in good status as you have been regularly making the payments for the last 2 yrs. You should not have much difficulty in refinancing it.
Posted: Thu Aug 30, 2007 6:55 pm Post subject: negotiating with current lender
Miller st - Lender has asked me for current pay stubs (Income). I will be providing expenses under different heads. (Income - Expenses) i save around 300-400. I was wondering if this saving would encourage them to increase the points.
My debt - Income ratio is little high and it's little difficult to refinance from other lenders. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
With your high debt to income ratio, you can go for a no-ratio loan. It is a type of home loan which will not require any verification of your income and thus cannot calculate your debt to income ratio. But to qualify for such loan, you must have a good credit and a sufficient amount of personal assets.
You can get to know more about No-ratio loans from a previous discussion on the topic. _________________ Procrastination is the enemy of your financial sucess
Posted: Fri Aug 31, 2007 5:16 am Post subject: RE: ARM resets..disclose savings?
Hi hkakkad,
Welcome to our forums.
If you inform the lender about your savings, the lender may realize that you are capable of paying off the loan even if the rate increases beyond a certain level. But you may not prefer a rate hike equal to that level. Therefore, I think it is better to keep aside your savings because you may need it in times of any emergency as well.
However, as far as paying points in order to get a lower rate is concerned, I don't think that is possible especially when an ARM resets.
Just refinance your mortgage if you can to get a payment you can afford because your current mortgage will continue to adjust _________________ Eugene Volovik
Branch Manager
Team USA Mortgage
612-481-3127
Conventional, FHA and Commercial Lending
i save around 300-400. I was wondering if this saving would encourage them to increase the points.
You will have to show this amount somewhere, like if you put it as some expense, the lender will do a check to see if it is correct or not.
What I also feel is that you should contact some other lender and inquire about refinance choices open for you. _________________ Good is the Enemy of Great.
hkakkad
